QUESTIONS

QUESTION 44

Production efficiency implies that

1. joint profits can be increased.
2. joint profits are zero.
3. joint profits are minimized.
4. joint profits are maximized

QUESTION 46 2 points Save Answer Suppose the government wishes to regulate mercury emissions of factories in a specific industry by either setting an emissions standard or imposing an emissions fee (per ton of mercury). The government is uncertain as to the marginal abatement costs, which may be high ( MC 1) or low ( MC 2). If the actual marginal cost is MC1, then the Marginal Cost, Marginal Benefit ($) MC (high) 1400 1233 Expected MC MC (low) 900 500 MB 26.7 40 60 80 93.3 Units of Memory deadweight loss from the fee compared to the deadweight loss of the standard is (tons) O smaller. O greater. O same. O More information is needed